** The market is taking larger capacity or certain deals as a validation of superior fundamentals, Jefferies says

** Several major cos from Molson Coors, Constellation and Anheuser-Busch have pursued cannabis deals last year

** Brokerage says bull case on cannabis industry would represent a greater risk for alcohol; believes the normalization and socialization of cannabis could recruit new consumers and pose a threat to the alcohol industry

** The ETFMG Alternative Harvest ETF, which includes U.S.- and Canada-listed marijuana producers, fell ~23 pct in 2018 after gaining ~21 pct in 2017 (Reporting by Karina Dsouza in Bengaluru)